Randall Stuewe became the CEO of Darling Ingredients Inc. (NYSE:DAR) in 2003. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. This process should give us an idea about how appropriately the CEO is paid.
See our latest analysis for Darling Ingredients
How Does Randall Stuewe’s Compensation Compare With Similar Sized Companies?
Our data indicates that Darling Ingredients Inc. is worth US$4.4b, and total annual CEO compensation was reported as US$5.8m for the year to December 2018. While this analysis focuses on total compensation, it’s worth noting the salary is lower, valued at US$1.2m. We further remind readers that the CEO may face performance requirements to receive the non-salary part of the total compensation. We examined companies with market caps from US$2.0b to US$6.4b, and discovered that the median CEO total compensation of that group was US$5.0m.
So Randall Stuewe is paid around the average of the companies we looked at. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.
You can see a visual representation of the CEO compensation at Darling Ingredients, below.
Is Darling Ingredients Inc. Growing?
On average over the last three years, Darling Ingredients Inc. has shrunk earnings per share by 6.9% each year (measured with a line of best fit). It saw its revenue drop 3.8% over the last year.
Unfortunately, earnings per share have trended lower over the last three years. This is compounded by the fact revenue is actually down on last year. These factors suggest that the business performance wouldn’t really justify a high pay packet for the CEO. It could be important to check this free visual depiction of what analysts expect for the future.
Has Darling Ingredients Inc. Been A Good Investment?
Most shareholders would probably be pleased with Darling Ingredients Inc. for providing a total return of 121% over three years. As a result, some may believe the CEO should be paid more than is normal for companies of similar size.
In Summary…
Remuneration for Randall Stuewe is close enough to the median pay for a CEO of a similar sized company .
We’re not seeing great strides in earnings per share, but the company has clearly pleased some investors, given the returns over the last three years. So we think most shareholders wouldn’t be too worried about CEO compensation, which is close to the median for similar sized companies. Whatever your view on compensation, you might want to check if insiders are buying or selling Darling Ingredients shares (free trial).
Arguably, business quality is much more important than CEO compensation levels. So check out this free list of interesting companies, that have HIGH return on equity and low debt.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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February 04, 2020 at 06:24PM
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Should You Worry About Darling Ingredients Inc.’s (NYSE:DAR) CEO Pay? - Simply Wall St
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